An arbitration tribunal will rule in favor of German company RWE (the key player on the Czech gas market) in its dispute with Russian gas giant Gazprom over the price in long-term gas supply contracts, RWE reported.

"An arbitral tribunal granted RWE's request for a revision of the purchase price payable by RWE for the natural gas supplied under its long-term gas supply contract with Gazprom. In its final award, the tribunal awarded RWE a reimbursement for payments made since May 2010 and adjusted the purchase price formula of the contract by also introducing a gas market indexation, which according to the arbitral tribunal reflects the relevant conditions on the gas market at the time of the price revision in May 2010," the press release said.

A source in the gas industry told Interfax that the court's decision is a compromise. Out of all RWE's demands, only the one to change the price formula was actually satisfied (partially).

Gazprom previously lost against RWE in an arbitration proceeding to recover penalties from the importer for the failure to take out enough gas under the terms of 'take or pay' contracts. Gazprom is currently trying to appeal this decision.

RWE is Gazprom's fiercest opponent on foreign markets. Besides lawsuits, it is organizing reverse supplies of gas to Ukraine from Europe, in defiance of the Russian gas giant.